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TMI Blog2017 (5) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... reopening of assessment has to be viewed on the touchstone of the reason to believe as recorded while issuing the notice. The reasons recorded cannot be supplemented by affidavits and other material.In the case before us, the AO has stated that the assessee had claimed deduction to reduce his tax liability. Which were the deduction and how much was the tax effect is not mentioned in the reasons. Reasons recorded by the AO are of very general nature-rather they can be termed vague. Provisions of section 147 cannot be invoked on such frivolous grounds. Non application of mind is evident from the sentence that notice was issued as per the direction of the Addl. CIT. Thus, the entire re-opening proceedings stand vitiated. - Decided in favour o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t are part of the application filed for admission of additional ground. The Departmental Representative (DR) left the issue to the discretion of the bench. We find that the assessee has raised ground about the validity of the reassessment proceedings stating that the notice issued under section 148 was void. In our opinion, the ground raised by the assessee, under rule 11 of the Income Tax Appellate Tribunal, Rules, 1963, does not require the appreciation of the facts and it is purely legal ground. As the issue is about the basic jurisdiction and validity of the assessment order passed by the AO, so, in our opinion same is to be to be admitted as additional ground. 3. Before us, the AR argued that there was no tangible material with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ince there is reason to believe that the income has been escaped. A notice u/s. 148 dt. 17 .7. 2003 is issued. If we analyse the reasons recorded by the AO, it becomes clear that he has taken a decision to issue the reassessment notice as per the direction of the Additional CIT, that he was not in possession of any material that could be considered to be lead to the belief that taxable income had escaped assessment. Re-opening of completed assessment is not a routine matter.Provisions of section 147 should be invoked in deserving cases. It is said that each re-opened case has to be decided on its own merits and reopening of assessment has to be viewed on the touchstone of the reason to believe as recorded while issuing the notice. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer should not have considered the issue on which the reopening is sought during the regular assessment proceedings. In case the issue has been considered even if evidenced by asking questions then such an attempt to reconsider would not be permitted on ground of being a mere change of opinion ; (d) the reopening of an assessment must be on tangible material and the grounds for reopening must be recorded before issuing of notice for reopening of an assessment ; (e) these grounds recorded for reopening of an assessment must disclose a live link between the tangible material and the reason to believe that income chargeable to tax has escaped assessment ; (f) in the case of assessments sought to be reopened beyond a period of four yea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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